Nasscom sees IT export growth slowing

Nasscom sees IT export growth slowing

Nasscom sees IT export growth slowing
India’s software exports are expected to grow 7-8% in 2017-18 as against 8.6% last year, according to IT industry lobby group National Association of Software and Services Companies (Nasscom).

Presenting the outlook for FY18, Nasscom on Thursday said the industry had gone through political and economic uncertainties that had impacted decision-making and discretionary spending.

It expects an increase in exports at $124-125 billion in FY18 as against $116 billion in the same period last fiscal.

According to Nasscom, the slowdown is significant in the banking and financial services business, a major contributor to the IT industry’s revenues.

“It has also been hit by its retail clients facing a slowdown from the rise of online retail channels. The size of the Indian IT industry is pegged at $154 billion, including $11 billion incremental revenues added in the previous fiscal,” the Nasscom report said.

Nasscom also finds that the industry’s $11 billion domestic revenue is expected to grow faster than export revenues, a marked change from previous years. This is attributed to a relatively fast adoption of digital solutions by Indian enterprises.

Commenting on the report, Nasscom president R Chandrashekhar said the industry, manoeuvring through an uncertain phase this past year, had still maintained its status as a key hirer and global technology and services hub.